Building industrial space without a committed tenant can be risky, but the rewards can be great when the space fills a company's immediate needs.
That was the case for Gateway Commerce Center in Streetsboro, Ohio, just outside of Cleveland. Developers Geis and Westminster Capital built the 434,000-square-foot distribution center on speculation, sure that it would serve a need in the area.
The bet paid off for the developers' $30 million-plus investment when logistics company FNS leased the entire space in 2023 on a long-term basis.
The project has been selected as the winner of the 2024 CoStar Impact Award for lease of the year for Cleveland, as judged by a local team of real estate professionals familiar with the market.
About the Project: Gateway Commerce Center was the largest development built on speculation in the area at the time. Building the project on spec meant that a tenant could occupy the space immediately rather than waiting more than a year for a build-out.
What the Judges Said: "This makes a bold economic and social impact on Northeast Ohio," said Richard Kassouf, owner/broker with New Hope Realty. "Greater risk equals greater impact on the community."
They Made It Happen: David Stecker and Joe Messina of JLL; Conrad Geis of Geis Cos.; Mark Mazur of Westminster Capital.